Techknowgreen Solutions Limited

Industrials — Consulting Services · BSE

₹137.00+₹1.70 (+1.26%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Techknowgreen Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Techknowgreen Solutions Limited provides environmental consulting services in India.

IndustryConsulting Services

SectorIndustrials

Employees102

Annual revenue₹41 Cr

How does it make money?

Turns over ₹41 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 102 employees supports ₹40.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin36.3%

Net margin23.6%

Revenue / employee₹40.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 24.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE24.9%

ROE24.1%

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +2064% while net margin moved +6% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2064%

Margin effect+6%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.98 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

79/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

86/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.5x

3Y Median

20.2x

39 monthly readings · mean 125.6x · range 9.6x–528.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 48% below its 3y median of 20.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 88% below the peer median of 88.8x.

vs. its own history

Cheap

20.2x median over 39 months · -48%

vs. sector peers

Cheap

88.8x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.5x

P/B

2.25x

EV/EBITDA

7.4x

PEG

0.06

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Return on equity is rising
ROE has improved from 7.7% to 21.5%.
Return on capital is rising
ROCE has improved from 10.2% to 24.9%.
High return on capital employed
ROCE of 24.9% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 10.5x the stock trades 48% below its own median of 20.2x.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 62.9% to 36.3% over 3 years.
Debt is rising
Total debt is up 201% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 201% over 3 years, from ₹3 Cr to ₹9 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 26.6 points, from 62.9% to 36.3%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 48% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 62.9% to 36.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 134% a year✓ 178.7% CAGR
Latest reported year was 24.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 34%✓ 36.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹101 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.5x

Cheap

Cheap against the generic band

P/B Ratio

2.25x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.11

Profitable

Profitable on a per-share basis

ROE

24.1%

Strong

Strong capital efficiency

ROCE

24.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

24.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

76.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹137

ROA

16.3%

Good

Assets are working hard

Operating Margin

35.4%

Good

Healthy core-business profitability

Net Margin

23.6%

Good

Strong bottom-line conversion

Current Ratio

3.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.98

Market-like

Moves roughly in line with the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

133.8 / 134.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹23 Cr	₹33 Cr	₹41 Cr	+178.7%
EBITDA	₹1 Cr	₹9 Cr	₹10 Cr	₹15 Cr	+132.0%
EBITDA Margin	62.9%	38.9%	31.1%	36.3%	—
PAT (Net Profit)	₹0 Cr	₹6 Cr	₹8 Cr	₹10 Cr	+184.0%
EPS	₹0.57	₹8.27	₹10.27	—	—
ROE	7.7%	22.0%	21.5%	21.5%	—
ROCE	10.2%	31.8%	24.9%	24.9%	—
Total Debt	₹3 Cr	—	₹3 Cr	₹9 Cr	+44.4%
Free Cash Flow	-₹7 Cr	-₹11 Cr	-₹4 Cr	-₹7 Cr	—

🟢 Revenue has grown at 178.7% a year over 3 years.

🟢 EBITDA has grown at 132.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 62.9% to 36.3% over 3 years (-26.6 pts).

🟢 PAT (Net Profit) has grown at 184.0% a year over 3 years.

🟢 ROE has risen from 7.7% to 21.5% over 3 years (+13.8 pts).

🟢 ROCE has risen from 10.2% to 24.9% over 3 years (+14.7 pts).

🔴 Total Debt has grown at 44.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹58 Cr

Total Liabilities

₹13 Cr

Total Debt

₹9 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.7%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

6 general

Techknowgreen Solutions wins ₹4.10 Cr order from Remal Alcast

scanx.trade, 20 Jul

Compare with

Equitymaster, 10 Oct

Techknowgreen Solutions Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

LANDSMILL Stock Price and Chart — NSE:LANDSMILL

TradingView, 02 Apr

Techknowgreen Solutions 4th AGM resolutions pass with requisite majority

scanx.trade, 27 Sept

TECHKNOWGREEN SOLUTIONS LIMITE Share Price

Upstox, 18 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong13/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong13.5/15

🟢ValuationAttractive11.8/15

🔴RiskHigh3.5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 134% a year178.7% CAGR
✓EBITDA margin holds above 34%36.3%
✗Free cash flow remains positive-₹7 Cr
✓Debt / EBITDA stays below 2x0.6x
✓ROCE stays above 22%24.9%